Miami’s Star Island is now the nation’s most expensive neighborhood while the number of New York City areas where buying a home would set you back at least $1 million is on the decline, according to a new survey.
The average price of a single family home on Star Island, the man-made enclave off the coast of Miami Beach that is home to celebrities including Shaquille O’Neal, Gloria Estefan, and Rosie O’Donnell, was valued at an eye-popping $40.2 million as of December, according to Zillow.
That’s a 71% increase from the average price of $23.5 million for a home on the island just three years ago, according to the study, which was earlier cited by Bloomberg News.
Ken Griffin, the hedge fund billionaire who runs Citadel, recently purchased five properties on the island for a combined $194 million — pushing Star Island to the top of Zillow’s rankings for priciest neighborhood.
Star Island is now four times as expensive as Beverly Hills Gateway in Beverly Hills, Calif. and more than twice as expensive as the second-priciest neighborhood in the country — the Port Royal section of Naples, Fla., according to Zillow.
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Overall, the Miami metropolitan area has seen a whopping 160% increase in the number of million-dollar zip codes — from just 10 in Dec. 2019 to 26 as of December of last year, according to Realtor.com.
New York City, meanwhile, has seen a decline in its share of neighborhoods where the median listed price of a home is at least $1 million.
Marble Hill, Manhattan’s northern-most neighborhood and the only part of the borough which is physically attached to the Bronx, has seen typical home prices decline from $1.81 million in 2019 to $1.24 million — a 32% drop, according to Zillow.
A home in Washington Heights which cost $1.39 million three years ago saw its value drop by 20% to $1.12 million as of this past December, the survey by Zillow found.
Home-hunters looking for a property on Manhattan’s Upper East Side would have had to pay $8.31 million three years ago. As of December, that figure dropped by 9% to $7.58 million.
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Price neighborhoods in San Francisco, including Polk Gulch, Mission Dolores, Lower Haight, and South of Market, also saw double-digit percentage declines in home values over the course of the past three years, according to Zillow.
New York and San Francisco have both been plagued in recent years by a decline in the quality of life that local residents have blamed on surging crime rates, rampant homelessness, high taxation, and increasingly unaffordable cost of living.
Florida, Texas, and other Sun Belt states have been the beneficiaries of a significant gain in inflow migration in recent years thanks to overall lower cost of living, warmer weather, more lax COVID restrictions, and a friendlier business environment.
Federal government data shows that Florida recently surpassed New York State in the number of nonfarm jobs for the first time in 40 years.
Last week, Stephen Ross, the billionaire real estate developer behind the Hudson Yards project, predicted that New Yorkers will continue to move to Florida due to the relative “ease of living” in the Sunshine State.
In 2022, more New Yorkers moved to Florida than in any year in history, official statistics show.
The real estate market and its dynamics, especially in high-value neighborhoods, reflect a complex interplay of factors—economic, demographic, and social. The article you provided dives into various facets, and here's an overview of the concepts involved:
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Star Island: This man-made enclave off Miami Beach has become the most expensive neighborhood in the nation. It's home to numerous celebrities, and its property values have soared to an average of $40.2 million for a single-family home, a staggering 71% increase in just three years.
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Ken Griffin's Purchase: The hedge fund billionaire acquired five properties on Star Island for $194 million, significantly contributing to the area's top ranking in Zillow's priciest neighborhoods list.
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Real Estate Market Trends: Miami's metropolitan area has experienced a remarkable surge in million-dollar zip codes, marking a 160% increase from 10 to 26 within two years. This contrasts with New York City, which has seen a decline in neighborhoods where the median home price hits $1 million.
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New York City Neighborhoods: Marble Hill, Washington Heights, and Upper East Side in Manhattan have seen fluctuations in home values, with some areas experiencing declines of up to 32% in typical home prices.
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San Francisco: Certain neighborhoods like Polk Gulch, Mission Dolores, Lower Haight, and South of Market witnessed double-digit percentage decreases in home values over the past three years.
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Factors Affecting Real Estate Markets: Issues like surging crime rates, homelessness, high taxation, and an increasingly unaffordable cost of living have impacted the quality of life in cities like New York and San Francisco.
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Migration Trends: States like Florida and Texas have seen an influx of residents due to factors such as lower cost of living, warmer weather, relaxed COVID restrictions, and a more favorable business environment. This has led to Florida surpassing New York in nonfarm job numbers for the first time in decades.
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Stephen Ross's Prediction: Billionaire real estate developer Stephen Ross predicts continued migration from New York to Florida due to the perceived "ease of living" in the Sunshine State. Notably, in 2022, a record number of New Yorkers moved to Florida.
Understanding these trends involves a grasp of real estate economics, market fluctuations, demographic shifts, and the socio-economic factors influencing people's choices in where they live and invest.
